Chinese Shipbuilder Bows to Demand Slump

BEIJING—A major Chinese shipbuilder has laid off about 40% of its workforce in recent months, in a sign that China Inc. is under increasing strain from the slowdown in the world's No. 2 economy.

Lei Dong, secretary to the president of China Rongsheng Heavy Industries Group Holdings Ltd., said the company has let go of about 8,000 people, of whom more than half were subcontracted workers and the remainder full-time Rongsheng...